State Farm agrees to pay $100 million over Hurricane Katrina claims
A State Farm subsidiary has agreed to pay $100 million in restitution over its alleged mismanagement of flood insurance claims after Hurricane Katrina nearly two decades ago.
According to the Associated Press, State Farm Fire and Casualty Co. agreed to pay the restitution to the federal government, not to policyholders.
The agreement stems from a lawsuit filed by sisters Cory and Kerri Rigsby. The insurance adjusters, who were independent contractors for Bloomington-based State Farm, claimed the insurer avoided paying wind damage claims tied to the 2005 disaster by shifting them to the federal flood insurance program.
The Rigsbys won their case in 2013. The U.S. Supreme Court upheld the verdict in 2016.
State Farm has agreed to dismiss counterclaims against the Rigsby sisters for allegedly taking company documents.